HF 3128

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to tax increment financing; authorizing uses 
  1.3             of revenues from certain pre-1979 districts; amending 
  1.4             Minnesota Statutes 2003 Supplement, section 469.176, 
  1.5             subdivision 1c. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.8   469.176, subdivision 1c, is amended to read: 
  1.9      Subd. 1c.  [DURATION LIMITS; PRE-1979 DISTRICTS.] (a) For 
  1.10  tax increment financing districts created prior to August 1, 
  1.11  1979, no tax increment shall be paid to the authority after 
  1.12  April 1, 2001, or the term of a nondefeased bond or obligation 
  1.13  outstanding on April 1, 1990, secured by increments from the 
  1.14  district or project area, whichever time is greater, provided 
  1.15  that in no case will a tax increment be paid to an authority 
  1.16  after August 1, 2009, from such a district.  If a district's 
  1.17  termination date is extended beyond April 1, 2001, because bonds 
  1.18  were outstanding on April 1, 1990, with maturities extending 
  1.19  beyond April 1, 2001, the following restrictions apply.  No 
  1.20  increment collected from the district may be expended after 
  1.21  April 1, 2001, except to pay or repay: 
  1.22     (1) bonds issued before April 1, 1990; 
  1.23     (2) bonds issued to refund the principal of the outstanding 
  1.24  bonds and pay associated issuance costs; 
  1.25     (3) administrative expenses of the district required to be 
  2.1   paid under section 469.176, subdivision 4h, paragraph (a); 
  2.2      (4) transfers of increment permitted under section 
  2.3   469.1763, subdivision 6; and 
  2.4      (5) any advance or payment made by the municipality or the 
  2.5   authority after June 1, 2002, to pay any bonds listed in clause 
  2.6   (1) or (2); and 
  2.7      (6) amounts authorized under paragraph (d). 
  2.8      (b) Each year, any increments from a district subject to 
  2.9   this subdivision must be first applied to pay obligations listed 
  2.10  under paragraph (a), clauses (1) and (2), and administrative 
  2.11  expenses under paragraph (a), clause (3).  Any remaining 
  2.12  increments may be used for transfers of increments permitted 
  2.13  under section 469.1763, subdivision 6, and to make payments 
  2.14  under paragraph paragraphs (a), clause (5), and (d). 
  2.15     (c) When sufficient money has been received to pay in full 
  2.16  or defease obligations under paragraph (a), clauses (1), (2), 
  2.17  and (5), and no spending is permitted by paragraph (d) for the 
  2.18  year, the tax increment project or district must be decertified. 
  2.19     (d) A city may expend increments from a tax increment 
  2.20  financing district subject to this subdivision after April 1, 
  2.21  2001, if all of the following conditions are met: 
  2.22     (1) the captured tax capacity for all tax increment 
  2.23  financing districts constituted less than six percent of the 
  2.24  city's total tax capacity for taxes payable in 2003; and 
  2.25     (2) the population of the city exceeds 50,000. 
  2.26     [EFFECTIVE DATE.] This section is effective for tax 
  2.27  increment financing districts for which the request for 
  2.28  certification was made before August 1, 1979.